PIC completes £3bn of new business in “strong” first half of 2024 results

Pension Insurance Corporation plc (PIC), the specialist insurer of UK defined benefit pension schemes, has reported its financial results for the first half of 2024, posting an adjusted operating profit before tax (AOPBT) of £272 million, compared to the previous year’s £506 million, which the firm noted was a result of lower new business volumes.

At the same time, the firm posted a solvency capital ratio of 234% for the period, compared to 211% from full-year 2023, considerably above long-term average, with surplus of £4.8 billion (FY2023 – £4.3 billion).

PIC also reported £47.7 billion in financial investments, compared to £46.8 billion from FY2023, with insurance liabilities of £42.1 billion (FY2023: £41.2 billion).

In addition, PIC announced that £3 billion of new business was completed in the first half of 2024, across nine schemes, in comparison to £6.5 billion from the same period last year, with clients including Next, De Beers, and TotalEnergies.

H1’24 also saw PIC launch its streamlined service, Mosaic, for small pension schemes looking to complete a buyout.

As well as this, PIC recorded new business CSM of £103 million in H1’24, (H1’23: £297 million), which the firm noted was largely a result of lower new business volumes compared to the same period in 2023, in which PIC completed
the record £6.2 billion RSA transaction.

Tracy Blackwell, Chief Executive Officer of PIC, commented: “PIC had a strong first half as we focused on developing our offering for trustees seeking to de-risk their members’ pensions, including launching our streamlined service for small schemes, Mosaic. We worked to improve our already excellent levels of customer service for our policyholders and were pleased to win multiple awards based on our customer service offering.

“During the half we completed £3 billion of new business, including a transaction with the TotalEnergies UK Pension Plan, covering £1.2 billion of liabilities. This transaction was won in part due to the strong relationship we forged with the Trustees in the decade since we first insured the Plan’s liabilities. We also continued to invest in UK infrastructure and housing based on our partnership approach, and intend to invest significantly more in these areas over the coming years.”

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